Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 15 : Financial MisconductPart 2 : Criminal proceedings173. Offences |
| (1) | The accounting officer of a municipality is guilty of an offence if that accounting officer— |
| (a) | deliberately or in a grossly negligent way— |
| (i) | contravenes or fails to comply with a provision of section 61(2)(b), 62(1), 63(2)(a) or (c), 64(2)(a) or (d) or 65(2)(a), (b), (c),(d), (f) or (i); |
| (ii) | fails to take reasonable steps to implement the municipality’s supply chain management policy referred to in section 111; |
| (iii) | fails to take all reasonable steps to prevent unauthorized, irregular or fruitless and wasteful expenditure; or |
| (iv) | fails to take all reasonable steps to prevent corruptive practices— |
| (aa) | in the management of the municipality’s assets or receipt of money; or |
| (bb) | in the implementation of the municipality’s supply chain management policy; |
| (b) | deliberately misleads or withholds information from the Auditor-General on any bank accounts of the municipality or on money received or spent by the municipality; or |
| (c) | deliberately provides false or misleading information in any document which in terms of a requirement of this Act must be — |
| (i) | submitted to the Auditor-General, the National Treasury or any other organ of state; or |
| (ii) | made public. |
| (2) | The accounting officer of a municipal entity is guilty of an offence if that accounting officer— |
| (a) | deliberately or in a grossly negligent way— |
| (i) | contravenes or fails to comply with a provision of section 94(2)(b), 95(1), 96(2), 97(a) or 99(2)(a), (c) or (e); |
| (ii) | fails to take all reasonable steps to prevent irregular or fruitless and wasteful expenditure; or |
| (iii) | fails to take all reasonable steps to prevent corruptive practices in the management of the entity’s assets, receipt of money or supply chain management system; |
| (b) | deliberately misleads or withholds information from the Auditor-General or the entity’s parent municipality on any bank accounts of the municipal entity or on money received or spent by the entity; or |
| (c) | deliberately provides false or misleading information in any document which in terms of a requirement of this Act must be— |
| (i) | submitted to the entity’s parent municipality, the Auditor-General, the National Treasury or any other organ of state; or |
| (ii) | made public. |
| (3) | A senior manager or other official of a municipality or municipal entity exercising financial management responsibilities and to whom a power or duty was delegated in terms of section 79 or 106, is guilty of an offence if that senior manager or official deliberately or in a grossly negligent way contravenes or fails to comply with a condition of the delegation. |
| (4) | A councillor of a municipality is guilty of an offence if that councillor— |
| (a) | deliberately influences or attempts to influence the accounting officer, the chief financial officer, a senior manager or any other official of the municipality to contravene a provision of this Act or to refrain from complying with a requirement of this Act; |
| (b) | interferes in the financial management responsibilities or functions assigned in terms of this Act to the accounting officer of the municipality or delegated to the chief financial officer of the municipality in terms of this Act; |
| (c) | interferes in the financial management responsibilities or functions assigned in terms of this Act to the accounting officer of a municipal entity under the sole or shared control of the municipality; or |
| (d) | interferes in the management or operational activities of a municipal entity under the sole or shared control of the municipality. |
| (5) | A councillor, an official of a municipality or municipal entity, a member of the board of directors of a municipal entity or any other person is guilty of an offence if that person deliberately or in a grossly negligent way— |
| (a) | impedes an accounting officer from complying with a provision of this Act; |
| (b) | gives incorrect, untrue or misleading information material to an investment decision relating to borrowing by a municipality or municipal entity; |
| (c) | makes a withdrawal in contravention of section 11; |
| (d) | fails to comply with section 49; |
| (e) | contravenes a provision of section 115(2), 118 or 126(5); or |
| (f) | provides false or misleading information for the purposes of any document which must in terms of a requirement of this Act be— |
| (i) | submitted to the council, mayor or accounting officer of a municipality or to the Auditor-General or the National Treasury; or |
| (ii) | made public. |